Question 1

When we say demand DECREASES, we mean that there is a

Accepted Answer

leftward shift of the demand curve.

Answer

rightward shift of the demand curve.

Answer

movement to the left along a demand curve.

Answer

movement to the right along a demand curve.

Question 2

When we say demand INCREASES, we mean that there is a

Accepted Answer

rightward shift of the demand curve.

Answer

movement to the right along a demand curve.

Answer

movement to the left along a demand curve.

Answer

leftward shift of the demand curve.

Question 3

When we say QUANTITY DEMANDED INCREASES, we mean that there is a

Accepted Answer

movement to the right along a demand curve.

Answer

movement to the left along a demand curve.

Answer

rightward shift of the demand curve.

Answer

leftward shift of the demand curve.

Question 4

When we say QUANTITY DEMANDED DECREASES, we mean that there is a

Accepted Answer

movement to the left along a demand curve.

Answer

leftward shift of the demand curve.

Answer

movement to the right along a demand curve.

Answer

rightward shift of the demand curve.

Question 5

People come to expect that the price of per liter of gasoline will fall next week. As a result,

Accepted Answer

today's demand for gasoline decreases.

Answer

today's quantity demanded for gasoline increases.

Answer

today's quantity demanded for gasoline increases.

Answer

next week's demand of gasoline increases.

Question 6

The law of demand implies that if nothing else changes, there is

Accepted Answer

an inverse relationship between the price of a good and the quantity demanded.

Answer

a positive relationship between the price of a good and the quantity demanded.

Answer

a linear relationship between price of a good and the quantity demanded.

Answer

a direct relationship between price of a good and the quantity demanded.

Question 7

If a good becomes popular or fashionable, what will happen with the demand for the good?

Accepted Answer

increase

Answer

decrease

Answer

stay the same

Answer

decline

Question 8

Competing products that can be used in place of one another.

Accepted Answer

substitute

Answer

normal

Answer

exterior

Answer

complementary

Question 9

This is illustrated by movement along the demand curve

Accepted Answer

change in quantity demanded

Answer

income effect

Answer

change in demand

Answer

substitute effect

Question 10

The ceteris paribus assumption means that all other factors (other than price) remain unchanged.

Accepted Answer

True

Answer

False

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